THE ailing Greek Prime Minister, Mr Andreas Papandreou (76), announced his resignation last night, the secretary general of his Pasok socialist party said.
Mr Costas Skandalidis said Mr Papandreou, who is suffering from a prolonged illness in an Athens clinic, had decided to step down and start the process for a successor to take over Pasok and the reins of government.
Mr Skandalidis said a Pasok central committee meeting due to tackle the issue of a successor to Mr Papandreou would be brought forward to tomorrow from Saturday.
The committee meeting will set in motion procedures to choose a successor to Mr Papandreou, who has been seriously ill in hospital for almost two months.
Mr Papandreou entered the Onassis Heart Centre in Athens on November 20th suffering from pneumonia. He developed kidney problems, underwent frequent dialysis treatment and a tracheotomy operation, and for a while breathed with the aid of a respirator.
His prolonged illness has been characterised by a tantalising series of recoveries and relapses, which has threatened to divide the Pasok party, with those loyal to Mr Papandreou counselling patience and the opposition faction clamouring for a rapid solution to end political paralysis.
But in recent days, even the more die hard of Mr Papandreou's followers seem to have come round to the idea of a speedy solution and have held a number of meetings with him.
Earlier yesterday the Greek press said Mr Papandreou should step down, arguing that the Prime Minister's close associates no longer opposed his resignation.
The increased activity follows repeated warnings from finance and economy ministers that the continuing political vacuum would adversely affect the Greek economy.
Only his wife, Dimitra, who is head of the Prime Minister's office, has shown no signs of modifying her attitude.
In recent days, several politicians have held meetings with her to persuade her to accept her husband's resignation. The Prime Minister's resignation resolves an acute constitutional dilemma as the Greek basic law only allows for replacement of the head of government if he dies or resigns.
The charismatic Mr Papandreou survived a string of controversies and scored a stunning comeback in elections in October 1993.
His passionate supporters forgave him everything: a 1991 corruption trial, a flight attendant half his age as his mistress and poor health that made him unable to rule the country.
In 1981 Papandreou cashed in on widespread anti American and anti European sentiment to sweep to power as Greece's first socialist prime minister.
His coming to power signalled the integration of the Greek left into the mainstream, healing the wounds of a 1946-49 civil war and the 1967-1974 military dictatorship.
